According to BlockBeats, UBS's analysis indicates that recent employment data reveals hidden weaknesses in the US labor market, potentially supporting further cuts to interest rates by the Federal Reserve early next year. UBS Chief Economist Paul Donovan emphasized in a client report that the data raises several concerns. The quality of the data should be assessed with caution due to the fact that the government shutdown worsens low response rates in Bureau of Labor Statistics surveys.
Eliz Ausenbau, Director of Investment Strategy at Morgan Wealth Management, agrees that the October data is particularly concerning. She noted that the report reinforces the market's perception of the current political course of the Federal Reserve System. Cautious rate cuts over the past few months have wisely brought rates back to a more neutral level. Ausenbau suggests that another rate cut in the first quarter of 2026 may be appropriate, although the economy remains stable, allowing the Federal Reserve System to patiently monitor future events.
